Sensex at 2-week high on rise in auto, oil & gas shares

Mumbai: Advancing for the fourth day, the S&P BSE benchmark Sensex on Wednesday spurted by 138 points to a two-week high of 19,367.59 supported by auto, oil & gas, metal and realty stocks despite an uptick in wholesale inflation.

While Tata Motors surged 9.67 percent to Rs 319.30 after its unit Jaguar Land Rover reported 21 per cent higher sales in July globally, Bajaj Auto shares logged nearly 3 percent gain after the 50-day long strike at its Chakan plant was called off on Tuesday.

The Sensex, which had gained 565 points in the past three sessions, rose further by 137.75 points, or 0.72 percent, to 19,367.59, a level last seen on July 29. Brokers said the upswing in market was supported by quarterly earnings by Tata Steel whose shares jumped 3.59 percent. The company reported better-than-expected first quarter results with consolidated net profit surging 90.51 percent.

Oil & gas shares saw heavy buying on buzz that the government may give a go-ahead to a one-time hike of Rs 2-3 per litre in diesel prices to offset the impact of fall in rupee value.

Rising prices of onions and other vegetables pushed inflation to a five-month high of 5.79 percent in July even as the government and RBI battled to stabilize the rupee. A mixed trend in the Asian region and better opening in European markets amid reports that France has emerged from recession further positively influenced investor sentiment.

The broad-based National Stock Exchange index Nifty rose by 43 points, or 0.75 percent to 5,742.30. Also, SX40 index, the flagship index of MCX-SX, closed at 11,512.15, up 104.01 points, or 0.91 percent.